The need to accelerate business reinvention is highlighted by PwC Cyprus' 13th survey of CEOs
PwC presented the key findings of its 13th survey of CEOs in Cyprus, at a special event entitled “Success in the era of constant changes. We accelerate the reinvention of our businesses”.
The main conclusion of the survey is that compared to last year, CEOs in Cyprus (together with the 4,702 CEOs from 105 countries who participated in the PwC Annual Global Survey) appear more optimistic about economic development despite the significant challenges and difficulties that they have to deal with. As can be seen, CEOs confidently apply a mindset of adaptability and flexibility, focusing their efforts on how to reinvent their businesses.
Specifically, 40% of Cypriot CEOs believe that global economic growth will improve over the next 12 months and 43% that economic growth in Cyprus will also improve, while 45% said they will increase their organization's human resources. This is a significant difference compared to the findings of last year's report, in which CEOs (Global and in Cyprus) appeared more pessimistic than ever.
It is worth mentioning that 43% of CEOs believe that their companies will not be financially viable for more than ten years if their current operating model is maintained. This belief is directly linked to their view that technological developments (66%), changes in customer preferences (53%) and government regulations (43%) have significantly affected companies over the past five years and they estimate that these trends will be a decisive factor in the reinvention of their companies over the next three years as well. Technological developments are recognized as the driving force for reinvention by all CEOs (Global, Eurozone and Cyprus). Interestingly, CEOs in the Eurozone highlight the growing importance of government regulation in this area.
Through the findings of this year's research, the complex environment in which CEOs are called upon to make strategic decisions that will lead their businesses safely into the new era of continuous reinvention becomes apparent. Concerns about grand challenges remain strong. Inflation dominates as the main concern at 23%. Geopolitical conflicts and cyber threats follow at 21%, followed by macroeconomic instability at 18%.
Revenue and headcount growth
However, despite their concerns about the long-term viability of their companies, business leaders in Cyprus appear optimistic about their own company's revenue growth over the next 12 months. 41% of them are very optimistic about the prospects for revenue growth, up slightly from last year's 38%. Accordingly, 35% of CEOs in the Eurozone and 38% of CEOs Global are very optimistic about their company's revenue growth prospects next year.
Regarding human resources, 45% of the participants in Cyprus answered that they will increase it and 49% that they will not make any changes during the next 12 months. Eurozone CEOs give a 19% chance of cutting their people and Global CEOs 22%.
Artificial Intelligence
The rapid development of technology and its influence on the way businesses operate are among the concerns of CEOs. Indicative is the case of the galloping Artificial Intelligence (GenAI) which creates expectations in the majority of CEOs that it will help them manage important administrative gaps that exist today in their organizations and at the same time contribute to improving the quality of their services and products by in the next 12 months.
These results highlight the important need to upgrade human resources.
Commenting on the survey, the CEO of PwC Cyprus, Philip Sosylos said:
“PwC's survey of CEOs reveals that business leaders in Cyprus are demonstrating flexibility and adaptability as they feel increasingly confident about the prospects of the Cypriot economy, especially compared to the rest of the Eurozone. At the same time, they align with CEOs Globally, recognizing that their businesses will not be sustainable in the medium term unless they reinvent their business models, leveraging Generative Artificial Intelligence (GenAI) among other determinants. The message is clear: We should no longer talk about the need for speed in taking action. We should be talking about the need to accelerate the reinvention of our organizations.”
To see the results of the survey click here.
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